NKG reported poor Q1 2019 results with revenue down 18% YoY to VND2.9tn (USD128mn) and a net loss of VND102bn (USD4.4mn). Such performance was due to weak sales volume amid high competition and challenging HRC price movement, causing loss in gross profit level. As Q1 2019’s result came in weaker than our expectation, we see downside risk to our 2019 forecast.